The PRC is the big brother in this relationship, and it has the capacity to be generous to Taiwan on this issue in a manner that might do much to defuse that issue internally in Taiwan.
There is no question that Taiwan is a state in any political science definition of a state.
The greater concerns in China and Taiwan are on the political side, not on the economic side.
So, anything that avoids a conflict that could draw in, unhappily again, outside powers such as the United States or revisit, for example, Japan's interests in the Taiwan area would be the last thing that anyone would want.
A war in the Taiwan Strait would destroy China's international relations overnight. It would destroy Chinese - Japanese relations, not to mention Chinese - American relations.